This study explored to what extent the Hong Kong employees perceive their Psychological Contract is violated. A survey was conducted on the employees of a Hong Kong transportation organisation undertaking a major infrastructure project. The sampling group comprised both Permanent and Contract staff. Contrary to research findings by Bergmann et al. (1986), Larwood et al. (1998), Rousseau (1989, 1990, 1995) and Rousseau and Wade-Benzoni (1995), Contract staff incline to maintain a relational rather than transactional contract with their employer. Towards the end phase of the project, significant amount of Psychological Contract Violation is noted. However, some of these violations are subsided upon adequate provision by the employer to satisfy their needs. This study suggests that irrespective of employment status, both Permanent and Contract Staff have similar Psychological Contract Indices when they face the same uncertainties and job prospects. Directions on the further research are discussed.